Companies in Turkey
In Turkey we have general partnerships, limited partnerships, joint stock companies and partnerships with limited liability and co-operative partnerships. I will give an overview of joint stock companies and partnerships with limited liability, since these are the most common ones.
1. Joint Stock Partnerships create an entirely separate legal entity or corporate legal identity, which makes it possible to conduct business in its own name, independently of the individuals who created it. The partners do not have any personal liability for the corporation’s debts and obligations. There is no minimum number of partners required to form this type of company and the minimum capital investment in a corporation is specified by law. Legal persons may become incorporators. A share represents the monetary value of the ownership that the corporation assigns to each share. The most important characteristic is that shareholders do not have any personal liability for the acts of the corporation.
2. Partnerships with Limited Liability may be formed by an individual (lay or legal) or by a group of lay or legal persons. Although there is liability for tax debts in Limited Liability, a shareholder’s liability is limited to her or his contribution to the total share capital. The sole shareholder may become the sole director for better control. The minimum capital required is only 10.000 TL.